Jute body has requested for extension of the existing duties on imports alleging circumvention of the duty

The commerce ministry has recommended extension of anti-dumping duty on jute sacking bags from Bangladesh to guard domestic players from cheap imports.

The ministry’s investigation arm Directorate General of Trade Remedies (DGTR) in its probe has concluded that imports of sacking cloth have increased after the imposition of anti-dumping duty.

“The authority recommends extension of the existing anti-dumping duty on sacking bags” imposed on January 5, 2017, the directorate has said in a notification.

Currently, the duty exists on jute yarn, sacking bags and hessian fabric (made from skin of jute plant). The duty imposed is in the range of USD 6.3 per tonne to USD 351.7 per tonne.

The Indian Jute Mills Association has filed an application for initiation of anti-circumvention investigation concerning import of the product exported from Bangladesh.

It has requested for extension of the existing anti-dumping duties on the imports, alleging circumvention of the duty.

Countries carry out anti-dumping probe to determine whether their domestic industries have been hurt because of a surge in cheap imports.
As a counter measure, they impose duties under the multilateral regime of the World Trade Organization.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters.